# Who Wants To Be A Millionaire?

Does being a millionaire seem like a far-fetched dream? What does a typical millionaire actually look like? The truth is, being one is actually more achievable than you might imagine.

There is a test done by Stanford University once, called the marshmallow test. The test is one of the most accurate indicators to predict future success in a child. Basically, the test teaches the children to delay their gratification and they will receive a far greater reward. That is essentially the same and most important attribute that we need to succeed in becoming a millionaire.

Let’s us just take a short example of a person who started working at the age of 22. She will start her career with a salary of \$2,000 a month and able to save able 20% of her salary every year. To make it more realistic, we assume she will be able to get an increment on her salary of 3% a year until she topped her salary at \$5,000 a month. If she is able to invest that savings and compound it at a 10% return a year, she will end up with more than \$4.5 million by the time she retires at the age of 65.

 Age Wages Savings 10% Return 6% Return 22 \$  24,000.00 \$    4,800.00 \$          5,280.00 \$          5,596.80 23 \$  24,720.00 \$    4,944.00 \$        11,246.40 \$        11,173.25 24 \$  25,461.60 \$    5,092.32 \$        17,972.59 \$        17,241.50

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 63 \$  60,000.00 \$  12,000.00 \$  3,837,325.42 \$  1,351,154.96 64 \$  60,000.00 \$  12,000.00 \$  4,234,257.96 \$  1,444,944.25 65 \$  60,000.00 \$  12,000.00 \$  4,670,883.76 \$  1,544,360.91

More importantly, even if she just earns 6% years on her savings every year, she will still end up with \$1.5 million by her retirement age. However, that is the easy part. The hard part remains; will we have the self-control to stop ourselves of spending our savings along the way?

The next time you choose being saving and spending, your decision might have a much greater impact than you might realize. Happy Investing.